Ethiopia Cancels International Bid for Wheat Procurement
The Public Procurement Service (PPS) canceled the bid it announced to buy 300,000 tonnes of wheat for humanitarian assistance. Price variation from the global market led the government to cancel the tender, according to information obtained from the PPS.
The Service announced the bid on October 5, 2021 on behalf of the National Disaster Risk Management Commission. The tender was floated in two lots each containing 150,000 tons of wheat.
Even though close to 40 companies bought the bid document, just one of them Huyton Inc Group, a Liberian grain supplier, submitted both technical and financial offers. The lone bidder, Huyton, submitted a bid only for one lot. The company has offered 379 dollars a ton to supply the wheat.
However, after reviewing the financial and technical documents of the company, the Service has canceled the bid mentioning that Huyton’s price offer was 10 to 20 dollars higher than the global wheat price, which is disadvantageous for the country.
The demand for milling wheat has increased recently due to the ongoing conflict in Ethiopia, which led to the internal displacement for millions of people. Since July following the TPLF army's advancement beyond Tigray, over two million people have been displaced from their houses from Afar and Amhara regions.